Boralex Inc Cl A (BLX) AI Stock Analysis

• Market Cap: C$3.36B
• Dividend Yield: 2.01%
• Average Volume (3M): 301.59K
• Price to Earnings (P/E): 305.2
• Beta (1Y): 0.96
• Revenue Growth: -16.63%
• EPS Growth: -87.78%
• Country: CA
• Employees: 822
• Sector: Utilities
• Sector Strength: 77
• Industry: Renewable Utilities
• EPS (TTM): 0.29
• Shares Outstanding: 102,755,360
• 10 Day Avg. Volume: 270,026
• 30 Day Avg. Volume: 301,587
• PEG Ratio: -7.46
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$40.00
• Price Target Upside: 22.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 62 Neutral
• Price Target: C$35.00 ▲(6.84%Upside)

Boralex's overall stock score reflects a combination of solid financial growth and strong technical momentum, offset by valuation concerns and challenges in profitability and cash flow management. The strategic initiatives and growth potential in renewable energy markets provide a positive outlook, but the high P/E ratio and financial constraints temper the optimism.

Positive Factors

Asset Quality

Asset quality is strong, with the majority of production contracted with creditworthy counter-parties.

Growth Targets

Attractive growth targets through 2030 unveiled, with expectations of significant increases in operating income and generating capacity.

Negative Factors

Share Price Reaction

Despite management's proven track record and the favorable renewable industry backlog, the share price reaction was muted, driven by skepticism around the new financial guidance.

Boralex Inc Cl A Business Overview & Revenue Model

Company Description

Boralex Inc., together with its subsidiaries, engages in the development, construction, and operation of renewable energy power facilities primarily in Canada, France, and the United States. As of December 31, 2021, the company had interests in 90 wind power stations with an installed capacity of 2,032 megawatts (MW); 16 hydroelectric power stations with a capacity of 181 MW; 12 solar power stations with an installed capacity of 244 MW; and one thermal power station with an installed capacity of 35 MW. It also operates two hydroelectric power stations on behalf of R.S.P. Énergie Inc. Boralex Inc. was incorporated in 1982 and is headquartered in Kingsey Falls, Canada.

How the Company Makes Money

Boralex Inc. generates revenue primarily through the sale of electricity produced by its renewable energy facilities. The company enters into long-term power purchase agreements (PPAs) with utilities and other large-scale energy consumers to secure stable and predictable cash flows. These agreements typically involve fixed pricing for the electricity generated, providing a reliable revenue stream. Additionally, Boralex benefits from government incentives and subsidies aimed at promoting renewable energy adoption. The company also engages in strategic partnerships and acquisitions to expand its portfolio and enhance its market presence, contributing to its overall earnings.

Boralex Inc Cl A Financial Statement Overview

Summary

Boralex Inc shows solid revenue growth and strong operating performance. However, concerns arise from declining profitability and high leverage, which could impact financial flexibility. Cash flow management requires attention due to negative free cash flow, posing risks to growth and investment capabilities.

Income Statement

Boralex has demonstrated steady revenue growth over the years, with a 13.6% increase in 2023. The gross profit margin has been consistently high, reflecting efficient cost management. However, the net profit margin has seen a decline, indicative of rising expenses or lower cost efficiency in recent years. The EBIT and EBITDA margins remain strong, signaling robust operating performance.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage, which could pose risks during downturns. However, the equity ratio has improved over the years, suggesting better balance sheet stability. Return on equity is moderate, reflecting adequate profitability relative to shareholder investment.

Cash Flow

Operating cash flow is strong, but there has been negative free cash flow in the latest year, primarily due to high capital expenditures. The free cash flow to net income ratio indicates challenges in translating profits into free cash flow. The company's cash flow management needs improvement to ensure long-term sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
853.00M	1.02B	836.00M	691.00M	633.00M
	Gross Profit
358.00M	642.00M	578.00M	538.00M	482.00M
	EBIT
226.00M	226.00M	112.00M	182.00M	172.00M
	EBITDA
534.00M	517.00M	406.00M	472.00M	391.00M
	Net Income Common Stockholders
36.00M	78.00M	8.00M	26.00M	55.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
592.00M	478.00M	361.00M	259.00M	275.00M
	Total Assets
7.60B	6.57B	6.54B	5.75B	5.31B
	Total Debt
4.30B	3.62B	3.61B	3.91B	3.77B
	Net Debt
3.71B	3.14B	3.25B	3.65B	3.50B
	Total Liabilities
5.58B	4.55B	4.51B	4.54B	4.32B
	Stockholders Equity
1.60B	1.63B	1.68B	1.00B	989.00M
Cash Flow		Free Cash Flow
-237.00M	216.00M	257.00M	166.00M	206.00M
	Operating Cash Flow
215.00M	496.00M	513.00M	345.00M	362.00M
	Investing Cash Flow
-578.00M	-268.00M	-684.00M	-433.00M	-247.00M
	Financing Cash Flow
479.00M	-109.00M	261.00M	75.00M	-413.00M

Boralex Inc Cl A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BLX, the sentiment is Positive. The current price of 32.76 is above the 20-day moving average (MA) of 32.02, above the 50-day MA of 30.88, and above the 200-day MA of 30.13, indicating a bullish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 59.21 is Neutral, neither overbought nor oversold. The STOCH value of 57.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BLX.

Boralex Inc Cl A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INE	67 Neutral	C$2.80B	70.26	4.20%	2.61%	0.97%	―
Sector *	64 Neutral	$8.52B	10.34	4.25%	5.88%	4.06%	-12.76%
PIF	64 Neutral	C$249.11M	59.81	-4.70%	7.10%	-1.45%	-210.16%
BLX	62 Neutral	C$3.36B	305.23	0.67%	2.01%	-16.63%	-87.78%
BEP		$16.85B	―	-5.97%	5.86%	―	―
AQN		$4.41B	―	5.54%	4.51%	―	―
NPIFF		$4.17B	22.28	6.08%	5.47%	―	―

Boralex Inc Cl A Corporate Events

Boralex Announces Leadership Transition with Chair’s Retirement

Boralex Inc. announced the retirement of Alain Rhéaume as Chair of the Board of Directors, effective once a successor is appointed by December 2025. Under Rhéaume’s leadership, the company has renewed its executive team, welcomed new directors, and pursued strategic plans, positioning itself well in the renewable energy sector amidst global economic challenges and opportunities in energy demand.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.

Boralex Unveils Ambitious 2030 Strategic Plan and Financial Goals

Boralex Inc. has announced its strategic plan and financial objectives for 2030, aiming to double its installed capacity every five years and increase the weighted average remaining contract duration from 11 to 14 years. The company plans to achieve a compound annual growth rate of 12% to 14% in operating income and 8% to 10% in cash flows per share, supported by a $6.8 billion investment plan. This strategy focuses on sustainable growth through a high-quality project pipeline and disciplined financial management, positioning Boralex to capitalize on the growing demand for renewable energy in its key markets.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.

Boralex Appoints New Executive VP for North America

Boralex Inc. has announced the appointment of Robin Deveaux as Executive Vice President and General Manager for North America, succeeding Hugues Girardin, who will retire at the end of 2025. Deveaux, with over 20 years of experience in renewable energy, is expected to lead the company as it prepares to unveil its 2030 Strategy, continuing the legacy of growth and community engagement established by Girardin.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.

Boralex Expands U.S. Renewable Energy Portfolio with New York Solar Projects

Boralex Inc. has announced the signing of contracts for two solar projects in New York, totaling 450 MW, as part of its U.S. growth strategy. These projects, located in Franklin and St. Lawrence Counties, are expected to significantly contribute to New York’s renewable energy targets and provide substantial economic benefits to local communities, including job creation and increased tax revenues.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.

Boralex Inc. Reports Q1 2025 Earnings and Launches First UK Wind Farm

Boralex Inc. reported net earnings of $41 million for the first quarter of 2025, marking a decrease from the previous year due to lower production and less favorable power purchase agreement prices in France. Despite these challenges, the company commenced production at the Limekiln wind farm in Scotland, its first operational project in the UK, highlighting its strategic growth in a promising market. The company continues to advance its projects in Canada and is preparing for upcoming tenders, aiming to strengthen its market position and operational performance.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$36.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.